Everyone makes mistakes – it is part of the learning process when it comes to trading or investing. So, let’s talk about four of the most common pitfalls that a lot of new traders tend to make. Thankfully, once a trader is aware of these common mistakes, these pitfalls can be easily avoided and they can move on to a successful trading career.
Watch this 2-minute video to learn more about common pitfalls of new traders.
Most Common Pitfalls
- Fear of Missing Out (FOMO) – Stick to your trading plan. Don’t chase the market, there will always be another opportunity later in the day or the next day.
- Overleveraged – Maxing out on your day trade margins can result in poor profit target and stop loss placement. Be patient and take it easy with the day trade margins.
Remember financial leverage can result in losses greater than the initial margin and traders should be aware of the risks involved in trading futures
- Lack of a Trading Plan – Create a trading plan that sets forth rules and guidelines that you can follow throughout the trading day.
- Over Trading – If you ever traded successfully in the morning and gave it all back in the afternoon, you need to look for a handful of successful trade setups that present themselves throughout the day.
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